Reining in your gift budget

Shoppers, debt expert offer tips on frugal shopping.

Shoppers, debt expert offer tips on frugal shopping.

November 27, 2005|ED RONCO Tribune Staff Writer

MISHAWAKA -- Joyce Laskus and Pam Fisk have holiday gift-giving licked. The two friends from Edwardsburg, who were grabbing lunch and a few Christmas gifts at University Park Mall on Monday, set financial limits for themselves and are careful about how they use their credit cards. They make many gifts themselves -- afghans or sweaters or wall hangings -- for friends and family. And they plan ahead, sometimes picking up items in June or July that won't be seen again until they show up under a tree in December. There's no science to keeping holiday spending down, Laskus said. All it takes is some financial forethought, elbow grease and a talent for craft-making. Besides making many of her gifts, Laskus shops throughout the year for the best deals and to spread out the expense. "When I see something, I buy it," Laskus said. Laskus also sets a strict spending limit and sticks to it. Like many people, Laskus is coping with more expenses this year that might cut into her Christmas spending. But that's never been a problem in her family, she said. "Oh, God, my fuel bills doubled this year," she said. "My kids are very understanding. All I've got to do is say, 'It's going to be a lean Christmas this year, kids.' " Laskus' friend, Fisk, said she and her husband also set a limit each year. This year it will probably be between $200 and $300, she said, spent evenly on each child in the family. And they're very careful with the credit card, Fisk said. "We don't overextend ourselves," she said. "We know how much we can afford and we stay within that limit." During leaner years, which Fisk said this is, she might spend less per person and make sacrifices in other parts of her budget. "I loved going out to lunch," she said. "I cut that back dramatically." But not everyone budgets. "And that's the problem," said Amanda Wellington, manager of Greenpath Debt Solutions, a credit counseling service with offices in Elkhart and South Bend. "When you're not planning ahead, things always come up. Car repairs. School clothes. And all of a sudden we're in to thinking about Christmas again," Wellington said. "It's not a surprise, but it comes quickly every year." Wellington recommends that consumers start a Christmas savings account through their bank or credit union. Already this year, spending is up. A Nov. 20 report from credit card company Visa says spending between Nov. 14 and 20 on Visa-branded credit cards was more than $22.6 billion, a 16.6 percent increase from the same period in 2004. So, a fat lot of good all that advice does now, with the holiday shopping season already under way, right? Wrong, said Wellington. "Thinking about next year's Christmas and how to do it better next year is key," she said. For Laskus and Fisk, that planning and careful attention to detail have paid off. But even in leaner years, the best way to enjoy the holidays, Laskus said, is to keep a sense of humor and perspective. "The gifts are smaller, and less expensive," she said. "But it's the love that counts."Staff writer Ed Ronco: eronco@sbtinfo.com (574) 235-6467